Petroleum products marketers have indicated that fuel prices may decline nationwide in the coming days, following a shift in price parity that now favors imported petrol over supplies from the Dangote Refinery.
The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, disclosed this in an interview with DAILY POST on Monday. His comments came after data released by the Major Energies Marketers Association of Nigeria (MEMAN) showed that imported petrol is now about ₦77 per litre cheaper than Dangote Refinery’s gantry price of ₦799 per litre.
The development presents a fresh dilemma for marketers, especially after the Dangote Refinery last week urged fuel distributors to boycott coastal petrol, claiming it was about ₦75 per litre more expensive than locally refined products.
Despite the ongoing debate over pricing, pump prices remain high in many parts of the country. As of Monday, petrol sold between ₦839 and ₦905 per litre across filling stations in Abuja. However, checks in Lagos revealed that some stations had reduced prices to as low as ₦817 per litre, undercutting Dangote-backed MRS stations selling at ₦839 per litre.
The Lagos price reduction has fueled expectations that a nationwide price drop may soon follow.
Commenting on the situation, Maigandi said current market realities, coupled with the right enabling environment, could lead to a reduction in pump prices across the country. He noted that about 80 percent of IPMAN members currently source petrol directly from the Dangote Refinery.
According to him, logistics and transportation costs largely account for differences in petrol prices nationwide.
“Pricing depends on volume and distance,” Maigandi explained. “Marketers buying over two million litres receive a discount of ₦20 per litre, while those purchasing five million litres and above get a ₦25 per litre discount, buying at the ₦799 gantry price.”
He added that prices are lower in Lagos due to proximity to supply sources, with petrol selling between ₦820 and ₦825 per litre, while Abuja prices range from ₦870 to ₦875 per litre.
Maigandi further stated that increased competition would ultimately drive prices down. “We currently have only one functional refinery. Once more refineries come on stream and imports increase, competition will intensify and fuel prices will drop further,” he said.
Recall that the Dangote Refinery raised its gantry price from ₦699 to ₦799 per litre in January, triggering a nationwide increase in pump prices. In December last year, refinery owner Aliko Dangote had pledged to reduce petrol prices to ₦739 per litre, a target that most filling stations have yet to achieve.
Meanwhile, global crude oil prices remained relatively stable on Monday evening, trading at $64.36 per barrel for West Texas Intermediate and $69.15 per barrel for Brent crude.
Market watchers say the interplay between local refining, imports, and global oil prices will be key in determining whether Nigerians finally get relief at the pump in the coming weeks.
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